Introduction: In the dynamic world of business, opportunities often knock...
Read MoreIf you’ve found the spot to build your future, we can help make it yours. Karza House Loans can
help finance a plot of land to build your dream home.
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Has been designed for what is beneficial to you! You can now fulfil your personal and business
needs by availing our Loan against Property. It comes along with these beneficial features.
per annum onwards
per annum onwards
per annum onwards
per annum onwards
A Plot loan is an amount of money that a person borrows from a financial institution to purchase a plot of land for the construction of a residential unit on the same. This loan is at a certain rate of interest for a particular number of years (tenure), which is to be paid back in equated monthly instalments (EMI).
There are a few conditions that need to be met for Plot loans,
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The residential plots for construction otherwise allocated by the builders are to be approved by Karza House.
The plot should be clearly identifiable and demarcated
Step 1: Submit your Application
The loan application you submit will consist of duly filled loan application form, proof of income, proof of identity and address.
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Step 2: Application Evaluation and Loan Sanction
Our internal team immediately gets to work for the evaluating the application and processing it further for the sanctioning of the loan.
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Step 3: Property valuation
Once the property papers are shared, & legal technical valuation of the plot is done to see if all is in order and approve the disbursal of the loan. Of course, this step gets much easier when you’re buying a home from an approved project.
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Step 4: Loan Disbursal
Post these approvals, signing the loan agreement takes place, leading to disbursal of the loan
A financial institution undertakes certain risks while lending money to borrowers, so for prudent lending, the institution checks the borrower’s repayment capacity through his/her savings, income, age, qualifications, nature of work, any loans currently served, etc. This is called Credit Evaluation and determines the loan eligibility comprising of the loan amount, tenure of the loan and the rate of interest.
A financial institution empanels agencies for objective valuation of the property it takes against the loan as security. The valuation is based on its age, usage, legal documentation, condition as well as geographical location. Market conditions also come into play, including whether there is a high demand for that particular type of property in the area in which it is located.
Registration of a property includes necessary stamping and paying of registration charges (may vary from state to state) for a sale deed and getting it recorded at the sub-registrar’s office of the concerned jurisdictional area.
Processing fee is a one-time charge to be paid by the borrower to the financial institution to covers the cost incurred to process a loan application.
A loan sanction letter is issued by a financial institution post evaluation of an applicant’s creditworthiness and other details like KYC etc. This letter is proof of eligibility of a loan from the financial institution and mentions the main loan details like maximum loan amount, maximum tenure, type of rate of interest EMI amount and special conditions if any. A sanction letter with these conditions is valid for a specified period of time.
A Power of Attorney allows a person to grant another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney.
First, the ‘General Power of Attorney’where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc.
Second, is the ‘Special Power of Attorney’wherein only a specific right is given by the owner to the chosen person.
The EMI is the amount of money a borrower pays back to a financial institution on a monthly basis towards the loan availed. It comprises of 2 components – the principal and the interest. So with every EMI, the borrower pays back a portion of the loan amount as a principal and a certain amount of interest. The EMI amount remains constant and by the end of the tenure, the borrower has paid back both principal and interest amount in full.
Pre-EMI is the interest amount paid by the borrower till the time final disbursement is pending and EMI is initiated. It is the interest on the amount of the loan disbursed and is payable every month from the date of each disbursement up to the date of commencement of the EMI. Pre-EMI is mostly applicable in cases where Under Construction property is being purchased on loan
The time period (in months or years) for which a financial institution lends the money to a borrower. The tenure may be different from person to person.
APF stands for Approved Project Funding.
Karza House identifies projects by certain developers and builders and evaluates basis the properties’ legal and technical evaluation. If a project qualifies the necessary requirements, it’s included in the APF master of Karza House .
The TAT(turn around time) for a loan disbursal, is lesser, where a project is already an APF and the loan processing is much simpler.
Loan to Value (LTV) is the amount of loan divided by the total value of the property and is represented in %. A loan value of INR 75 lakhs for a property worth INR 1 Crore would mean 75% LTV.
Disbursement means paying out the loan amount to the borrower or the builder from which the borrower has bought the home. The disbursement can be either in full or in tranches depending on the type of home financed (tranches are common for under-construction properties) and the terms agreed between the financial institution and the borrower.
A welcome letter is sent by a financial institution once a customer is fully onboarded. The welcome letter consists of the most important terms and conditions (MITC), Repayment Schedule, Schedule of Charges and all important loan details.
A loan account statement details out all the transactions completed in a particular loan account date by date. It also shows the outstanding balance due, the interest rate charged on that outstanding balance and any fees/charges incurred. However, the outstanding balance as reflected in SOA may not be the amount that you have to pay to close the account
Most Important Terms and Conditions details out the Loan details, repayment schedule, schedule of charges and any other relevant details of a loan account which a borrower must know. It is available on both website as well as on customer portal.
An Interest Certificate is a document issued by the lender which details out the bifurcation of the Principal and Interest Amount paid towards a home loan account in a particular financial year.
The NOC, or No Objection Certificate, is a document that states that you have paid all the EMIs and cleared all other outstanding loan dues and is issued by the company post the closure of the loan account. Please note that till the time NOC is not issued you may have liability towards Karza House.
You are required to submit the below-listed documents along with an application for loan foreclosure:Â
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Bounce charges are incurred if the EMI is not paid by the borrower on the due date.
Late Payment Charges, also referred to as ‘Penal charges’ are the charges incurred on the late payment of the outstanding dues in case of EMI bounce, by the borrower.
Swap charges are incurred by the borrower for changing the repayment instrument or change in the bank account for NACH Mandates.
Recovery charges are levied by the Company for any expenses incurred on the collection of overdue from the borrowers.
Foreclosure or prepayment charges are the charges a borrower incurs for partly paying/closing the loan ahead of its full loan term.
Charges paid by the customer as per State laws to register Finance Documents.
It is advisable to secure insurance for your loan as a proactive measure against unforeseen events like death, which could potentially lead to difficulties in meeting EMI obligations. Loan insurance serves as a voluntary risk mitigation tool, safeguarding the borrower in such situations.Â
The insurance contract is between the Insurer and the customers. The company plays a limited role in facilitating the insurance contract between customers and Insurers. It will be the Insurer’s responsibility to provide details and benefits to the customers.
Loan-linked Insurance covers a large amount of the loan liability. In any unforeseen circumstances like death, disability, hospitalization, and diagnosis of critical ailments, the Insurer can repay the loan liability through Insurance.
Credit-Life Insurance provides death cover for natural, accidental, and unnatural cause deaths. It also includes coverage for death due to Covid-19 and can be extended to co-borrowers. Customers can also avail the benefit of Section 80-C Income Tax deduction.
Survival-Benefit Plan is for critical illness insurance and provides additional cover for medical emergencies like heart attack, stroke, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short. These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
Charges paid by the customer as per State laws to register Finance Documents.
Tailored solutions, competitive rates, and personalized service, turning your homeownership dream into reality
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Your trusted partner for achieving life’s goals with hassle-free, quick, and flexible financing
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Simplifying your financial life with seamless loan transfers for greater savings and convenience
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